23 Risk management and hedging strategies.pdf

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BUSINESSCH23ACCAPAPERF9V1JA.doc1

Explain the significance of the currency of an invoice on foreign currency risk management Discuss and apply netting and matching as a form of foreign currency risk management Discuss and apply leading and lagging as a form of foreign currency risk management Define a forward exchange contract Calculate the outcome of a forward exchange contract Define money market hedging Calculate the outcome of a money market hedge used by an exporter Calculate the outcome of a money market hedge used by an importer Explain the significance of asset and liability management on foreign currency risk

management Compare and evaluate traditional methods of foreign currency risk management Define the main types of foreign currency derivates and explain how they can be used to

hedge foreign currency risk Discuss and apply matching and smoothing as a method of interest rate risk management

Discuss and apply asset and liability management as a method of interest rate riskmanagement

Define a forward rate agreement Use a forward rate agreement as a method of interest rate risk management Define the main types of interest rate derivates and explain how they can be used to hedge

interest rate risk

Qualification ACCA

Paper F9

Chapter 23 Risk management and hedgingstrategies

Learning Objective 311 326

Template ID CD1Source F9 Blueprint, F9 syllabus

Chapter Learning Objectives

Upon completion of this chapter you will be able to:


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Risk managementand hedging

Foreign currency risk

Practicalapproaches

Trading incurrencies

ForwardsMoney market

hedge

Balance sheethedges

Derivatives

Interest rate risk

Forward RateAgreements

Interest RateGuarantees

Futures

Othermethods

1 Managing foreign currency risk

When currency risk is significant for a company, it should do something to either eliminate it orreduce it.

Taking measures to eliminate or reduce a risk is called

hedging the risk or

hedging the exposure.

2 Practical approaches

2.1 Invoice in home currency

Insist all customers pay in your own home currency and pay for all imports in home currency.

This method:

Qualification ACCA

Paper F9


Content Objective 311 313, 320

Content, illustration andTYU included? yes

Source ACCA Paper 3.7 Study notes session20, ACCA Paper 3.7 Study Text Chp 14


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transfers risk to the other party

may not be commercially acceptable.

2.2 Do nothing

In the long run, the company wouldwin some, lose some

.

This method:

works for small occasional transactions

saves in transaction costs

is dangerous!

2.3 Leading

If an exporter (receipt) expects that the currency it is due to receive will depreciate over the nextfew months it may try to obtain payment immediately.

This may be achieved by offering a discount for immediate payment.

2.4 Lagging

If an importer (payment) expects that the currency it is due to pay will depreciate, it may attemptto delay payment.

This may be achieved by agreement or by exceeding credit terms.

NB Strictly this is NOT hedging it is speculation punting on the exchange rate changing inyour favour!

2.5 Matching

When a company has receipts and payments in the same foreign currency due at the same time,

it can simply match them against each other. It is then only necessary to deal on the forexmarkets for the unmatched portion of the total transactions.

Suppose that ABC plc has the following receipts and payments in three months time:

US

Receives $16m customer

ABC Plc.

Money paid Money due

Money due Money paid


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Pays $10m

US

supplier

Unmatched

exposure

$6m

(to be hedged by other methods)

2.6 Foreign currency bank accounts

Where a firm has regular receipts and payments in the same currency, it may choose to operatea foreign currency bank account.

This operates as a permanent matching process.

The exposure to exchange risk is limited to the net balance on the account.

3 Trading in currencies

3.1 The foreign exchange market

The foreign exchange or forex market is an international market in national currencies. It is highlycompetitive and virtually no difference exists between the prices in one market (e.g. New York)and another (e.g.London).

3.2 Bid and offer prices

Banks dealing in foreign currency quote two prices for an exchange rate:

a lower 'bid' price

a higher 'offer' price.

For example, a dealer might quote a price for sterling/US dollar of 1.4325 1.4330

The lower rate, 1.4325, is the rate at which the dealer will sell the variable currency (USdollars) in exchange for the base currency (sterling).

The higher rate, 1.4330, is the rate at which the dealer will buy the variable currency (USdollars) in exchange for the base currency (sterling).

To remember which of the two prices is relevant to any particular FX transaction, remember thebank will always trade at the rate that is more favourable to itself.

Illustration 1

Suppose that the sterling/US dollar rate is quoted as 1.4325 1.4330.


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If a company wants to buy $100,000 in exchange for sterling (so that the bank will be sellingdollars):

at the lower rate of 1.4325, the bank would sell them for 69,808

at the higher rate of 1.4330, the bank would sell them for 69,784

Clearly the bank would be better off selling them at the higher rate

RULE Bank buys high

If a company wants to sell $200,000 in exchange for sterling (so the bank would be buyingdollars):

at the lower rate of 1.4325, the bank would buy them for 139,616

at the higher rate of 1.4330, the bank would sell them for 139,567

The bank will make more money selling at the lower rate:

RULE Bank sells low

If in doubt, work out which rate most favours the bank or remember the rules:

3.3 The Spot Market

The spot market is where you can buy and sell a currency now (immediate delivery)

i.e. the spot rate of exchange.

3.4 The Forward market

The forward market is where you can buy and sell a currency, at a fixed future date for apredetermined rate i.e. the forward rate of exchange.

4 Hedging with forwards

Although other forms of hedging are available, forward cover represents the most frequentlyemployed method of hedging.

Bankbuyshigh

Banksellslow


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4.1 The method

Illustration 2

It is now the 1st

January and Y plc. will receive $10 million on the 30th April.

It enters into a forward contract to sell this amount on the forward date at a rate of $/ 1.60. Onthe 30th April the company is guaranteed 6.25m.

The risk has been completely removed.

Forward rates at a Discount Premium

Add Subtract

More $s per Less $s per

1st Currency is: Depreciated Appreciated

Illustration 3

Example:

$ /

Spot 1.7106 - 1.7140

Qualification ACCA

Paper F9



Content, illustration andTYU included?

yes



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Three month forward 0.50 - 0.56 cents discount

What are the forward rates? 1.7156 1.7196

Example:

$ /

Spot 1.7106 - 1.7140

Three month forward 0.82 - 0.77 cents premium

What are the forward rates? 1.7024 1.7063

Test your understanding 1

The current spot rate for US dollars against UK sterling is 1.4525 1.4535 $/ and the one monthforward is 0.25 0.30 cents discount.

A UK exporter expects to receive $400,000 in one month.

If a forward contract is used, how much will be received in sterling?

Test your understanding 1 solution

The exporter will be selling his dollars to the bank and the bank buys high at:

1.45350.00301.4565

The exporter will therefore receive400,000

1.4565= 274,631

4.2 Advantages and disadvantages of forward contracts

Forward contracts are used extensively for hedging currency transaction exposures.

Advantages include:

flexibility with regard to the amount to be covered

relatively straightforward both to comprehend and to organise.

Disadvantages include:


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contractual commitment that must be completed on the due date

no opportunity to benefit from favourable movements in exchange rates

Disadvantages of a forward:

It is a contractual commitment which must be completed on the due date.

This means that if a payment from the overseas customer is late, the company receiving thepayment and wishing to convert it using its forward contract will have a problem. The existingforward contract must be settled, although the bank will arrange a new forward contract for thenew date when the currency cash flow is due.

To help overcome this problem an option date forward contract can be arranged. This is aforward contract that allows the company to settle a forward contract at an agreed fixed rate of

exchange, but at any time between two specified dates. If the currency cash flow occurs betweenthese two dates, the forward contract can be settled at the agreed fixed rate.

Inflexible

It eliminates the downside risk of an adverse movement in the spot rate, but also prevents anyparticipation in upside potential of any favourable movement in the spot rate. Whatever happensto the actual exchange rate, the forward contract must be honoured, even if it would be beneficialto exchange currencies at the spot rate prevailing at that time.

5 A money market hedge

The money markets are markets for wholesale (large-scale) lending and borrowing, or trading inshort-term financial instruments. Many companies are able to borrow or deposit funds through

their bank in the money markets.

Instead of hedging a currency exposure with a forward contract, a company could use the moneymarkets to lend or borrow, and achieve a similar result.

Since forward exchange rates are derived from spot rates and money market interest rates, theend result from hedging should be roughly the same by either method.

NB Money market hedges are more complex to set up than the equivalent forward.

Qualification ACCAPaper F9




yes



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5.1 Hedging a payment

If you are hedging a future payment:

buy the present value of foreign currency amount today at the spot rate

this is, in effect, an immediate payment in sterling.

and may involve borrowing the funds to pay earlier than the settlement date

the foreign currency purchased is placed on deposit and accrues interest until thetransaction date.

the deposit is then used to make the foreign currency payment .

Illustration 4

Liverpool plc must make a payment of US $450,000 in 3 months time. The company treasurer

has determined the following:

Spot rate $1.7000 $1.7040

3 months forward $1.6902 $1.6944


Money Market rates: Borrowing Deposit

US dollars 6.5% 5% Annual Rates

Sterling 7.5% 6%

Decide whether a forward contract hedge or a money market hedge should be undertaken.

Solution

Matching concept: The company will want to put $444,444 on deposit now, so that they will

mature to match the payment in three months time.

Now 3mths

Payment 3m rates ($450,000) Buy $

US deposit rate

Deposit $444,444 1.0125 $450,000

0

Buy $ at spot. 1.7000


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Immediate

payment

(261,438) 1.01875 = 266,340

UK borrowing

rate

Payment

Forward market hedge: $450,000 /

1.6902

= 266,241

Note that:

as the payment has been made today, all forex risk is eliminated

the method presupposes the company can borrow funds today


Bolton must make a payment of US $230,000 in 3 months time. The company treasurer has

determined the following:

Spot rate $1.8250 $1.8361

3 months forward 0.88 - 0.91 discount


US dollars 5.1% 4.2% Annual Rates

Sterling 5.75% 4.5%


Solution

Now 3mths

Payment 3m rates ($230,000) Buy $

US deposit rate

Deposit $227,610 1.0105 $230,000

0

Buy $ at spot. 1.8250

Immediate (124,718) 1.014375 = 126,511


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payment

UK borrowing

rate

Payment

Forward market hedge: $230,000 /

1.8338

= 125,423

5.2 Hedging a receipt

If you are hedging a receipt:

borrow the present value of the foreign currency amount today

sell it at the spot rate

this results in an immediate receipt in sterling

this can be invested until the date it was due.

the foreign loan accrues interest until the transaction date

the loan is then repaid with the foreign currency receipt.

Illustration 5

Liverpool plc must is now expecting a receipt of US $900,000 in 6 months time. The company

treasurer has determined the following:

Spot rate $1.7000 $1.7040




US dollars 6.5% 5% Annual Rates

Sterling 7.5% 6%


Solution


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Now 6 mths

6m rate

Receipt $900,000 receipt

US loan rate

Loan $871,671 1.0325 ($900,000)

0

Sell at Spot 1.7040

Immediate receipt 511,544 1.03 526,890

UK deposit rate

Forward hedge:

$900,000 / 1.6809 = 535,427

The forward hedge is the recommended hedging strategy


Bolton is now to receive US $400,000 in 3 months time. The company treasurer has determined

the following:

Spot rate $1.8250 $1.8361

3 months forward 0.88 - 0.91 discount


US dollars 5.1% 4.2% Annual Rates

Sterling 5.75% 4.5%


Solution

Now 3 mths

3m rate

Receipt $400,000 receipt

US loan rate

Loan $394,964 1.01275 ($400,000)

0

Sell at Spot 1.8361


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Immediate receipt 215,110 1.01125 217,530

UK deposit rate

Forward hedge:

$400,000 / 1.8452 = 216,779

The money market hedge is the better strategy.

6 Balancing sheet hedging

All the above techniques are used to hedge transaction risk.

Sometimes transaction risk can be brought about by attempts to manage translation risk:

Translation exposure

arises because the financial statements of foreign subsidiaries must be restated in theparents reporting currency for the firm to prepare its consolidated financial statements

is the potential for an increase or decrease in the parent s net worth and reported incomecaused by a change in exchange rates since the last transaction.

A balance sheet hedge involves matching the exposed foreign currency assets on theconsolidated balance sheet with an equal amount of exposed liabilities i.e.:

a loan denominated in the same currency as the exposed assets and for the sameamount is taken out

a change in exchange rates will change the value of exposed assets but offset thatwith an opposite change in liabilities

This method eliminates the mismatch between net assets and net liabilities denominated in thesame currency, but may create transaction exposure.

As a general matter, firms seeking to reduce both types of exposures typically reduce transactionexposure first. They then recalculate translation exposure and then decide if any residualtranslation exposure can be reduced without creating more transaction exposure

Qualification ACCA

Paper F9


Content Objective 319


yes



14/24


7 Foreign currency derivatives

Foreign currency risk can also be managed by using derivatives:

7.1 Futures

Like a forward contract in that:

the companys position is fixed by the rate of exchange in the futures contract

it is a binding contract.

A futures contract differs from a forward contract in the following ways:

futures are for standardised amounts

futures can be traded on currency exchanges.

Because each contract is for a standard amount and with a fixed maturity date, they rarely coverthe exact foreign currency exposure.

7.2 Currency options

Options are similar to forwards but with one key difference:

They give the right but not the obligationto buy or sell currency at some point in the future at apredetermined date.

A company can therefore:

exercise the option if it is in its interests to do so

let it lapse if:

o the spot rate is more favourable

o no longer a need to exchange currency.

The option therefore eliminates downside risk but allows participation in the upside.

Options may be:

Qualification ACCA

Paper F9




yes



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The catch:

The additional flexibility comes at a price a premium must be paid to purchase an optionwhether or not it is ever used.

8 Hedging interest rate risk

8.1 Forward Rate Agreements

The aim of an interest rate forward is to:

lock the company in to a target interest rate

hedge both adverse and favourable interest rate movements.

The company enters into a normal loan but independently organises a forward with a bank:

interest is paid on the loan in the normal way

if the interest is greater than the agreed forward rate the bank pays the difference to the

company

if the interest is less than the agreed forward rate the company pays the difference to the

bank

Illustration 6

Enfield plcs, financial projections show an expected cash deficit in two months time of 8m,

which will last for approximately three months. It is now the 1st November 2004. The treasurer is

Qualification ACCA

Paper F9


Content Objective 324 325


yes


PUT OPTIONS CALL OPTIONS

Right to sellcurrency

Right to buycurrency


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concerned that interest rates may rise before the 1st January 2005. Protection is required for two

months

Now Rate Agreed

1st

Nov 1st Jan

Risk of adverse movement

i.e. that interest rates will increase in this period

The treasurer can lock into an interest rate today for a future loan. The company takes out a loan

as normal i.e. the rate it pays is the going market rate at the date the loan is taken out. It will then

receive or pay compensation under the separate forward rate agreement to return to the locked in

rate.

A 2

5 FRA at 5.00

4.70 is agreed.This means that:

The agreement starts in 2 months time and ends in 5 months time.

The FRA is quoted as interest rates for borrowing and lending, e.g. 5.00 4.75

The borrowing rate is always the highest

Required:

Calculate the interest payable if in two months time the market rate is: a) 7% or b) 4%

Solution

The FRA: 7% 4%

Interest payable: 8m .07 3/12 = (140,000)

8m .04 3/12 = (80,000)

Compensation receivable = 40,000

Payable = (20,000)

Locked into the effective interest rate of 5%. (100,000) (100,000)

In this case the company is protected from a rise in interest rates but is not able to benefit from afall in interest rates locked it a FRA hedges the company against both an adverse movement

and a favourable movement.

Note that:

the FRA is a totally separate contractual agreement from the loan itself and could bearranged with a completely different bank


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usually on amounts > 1m, the daily turnover in FRAs now exceeds 4bn

they can be tailor-made to the companys precise requirements

enables you to hedge for a period of one month up to two years.


Able Plc needs to borrow 30m for eight year starting in three months time.

A 3 11 FRA at 2.75 2.60 is available.

Show the interest payable if the market rate is a) 4% b) 2%


solution

The FRA: 4% 2%

Interest payable: 30m 0.04 8/12 = (800,000)

30m 0.02 8/12 = (400,000)

Compensation receivable = 250,000

Payable = (150,000)

Locked into the effective interest rate of 2.75%. (550,000) (550,000)

8.2 Interest rate guarantees (IRGs)

Interest rate guarantees like all options protect the company from adverse movements and allowit take advantage of favourable movements.

Decision rules:

Qualification ACCA

Paper F9




yes



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If there is an adverse movement If there is a favourable movement

Exercise the option to protect Allow the option to lapse

IRGs are more expensive than the FRAs as one has to pay for the flexibility to be able to takeadvantage of a favourable movement.

If the company treasurer believes that interest rates will rise

he will use an FRA, as it is the cheaper way hedge against the potential adversemovement

if the treasurer is unsure which way interest will move he may be willing to use the moreexpensive IRG to be able to benefit from a potential fall in interest rates.

8.3 Interest Rate Futures

The target of a future is to

lock the company into the effective interest rate

hedge both adverse and favourable interest rate movements.

Futures can be used to fix the rate on loans and investments. We will look here at loans:

How they work

As with a FRA, a loan is entered into in the normal way. Suitable futures contracts are thenentered into.

A futures contract is a promise, for example

If you sell a futures contract you have a contract to borrow money what you areselling is the promise to make interest payments.

If you sell a futures contract you have a contract to borrow money what you areselling is the promise to make interest payments.

However the borrowing is only notional:

Qualification ACCA

Paper F9




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we close out the position by reversing the original deal before the real borrowing starts i.e.before the expiry date of the contract.

This means buying futures if you previously sold them to close out the position. Thecontracts cancel out against each other i.e. we have contracts to borrow and deposit thesame amount of money.

The only cash flow that arises is the net interest paid or received i.e. the profit or loss onthe future contracts.

The price of futures moves inversely to interest rates therefore:

Interest rates rise Interest rates fall

Loan more expensive Loss from paying

extra interest

Loans cheaper Gain cash on interest

savings

Futures price falls Profit made from

having sold at one

price to open the

position and then buy

at a lower one to

close it.

Futures price rises Loss made from

having sold at one

price to open the

position and then

buying at a higher

one to close it

Net position Interest cost

effectively fixed

Interest cost

effectively fixed

Basis risk

The gain or loss on the future may not exactly offset the cash effect of the change in interest rates i.e. the hedge may be imperfect. This is known as basis risk.

8.4 Options

Borrowers may additionally buy options on futures contracts. These allow them to enter into thefuture if needed, but let it lapse if the market rates move in their favour.

8.5 Swaps

An interest rate swap is an agreement whereby the parties agree to swap a floating stream ofinterest payments for a fixed stream of interest payments and via versa. There is no exchange ofprincipal.

Swaps can be used to hedge against an adverse movement in interest rates.

Say a company has a $200m floating loan and the treasurer believes that interest rates are likelyto rise over the next five years. He could enter into a five-year swap with a counter party to swapinto a fixed rate of interest for the next five years. From year six onwards, the company will onceagain pay a floating rate of interest.


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8.6 Cash flow matching

An effective, but largely impractical means of eliminating interest rate risk.

Stated simply, interest rate risk arises from either positive (invested) or negative (borrowed) net

future cash flows.

The concept of cash matching is to eliminate interest rate risk by eliminating all net future cashflows.

A portfolio is cash matched if :

every future cash inflow is balanced with an offsetting cash outflow on the same date

every future cash outflow is balanced with an offsetting cash inflow on the same date.

The net cash flow for every date in the future is then zero, and there is no risk of interest rateexposure.

Whilst clearly not achievable, it does provide a broad goal that businesses can work towards.

8.7 Asset and liability management

Problems arise if interest rates are fixed on liabilities for periods that differ from those onoffsetting assets.

Suppose a company is earning 6% on an asset supporting a liability on which it is paying 4%. Theasset matures in two years while the liability matures in ten.

in two years, the firm will have to reinvest the proceeds from the asset.

if interest rates fall, it could end up reinvesting at 3%. For the remaining eight years, itwould earn 3% on the new asset while continuing to pay 4% on the original liability.

To avoid this, companies attempt to match the duration of their assets and liabilities.


Certain organisational and policy adjustments may be made internally by a business for thepurpose of minimising the effects of transactions in foreign currencies.

I dont know what smoothing is LO 322. Ive askedaccountants they didnt know either, read around notmentioned in any of my books & surfed - but didntunderstand a word of the articles.

Steve over to you!!!


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a) A group of companies controlled from the United Kingdom includes subsidiaries in India,Hong Kong and the USA. It is forecast that at the end of the current month, inter-company indebtedness will be as follows:

The Indian subsidiary will be owed 144,381,000 Indian rupees by the Hong Kongsubsidiary and will owe the USA subsidiary $1,060,070.

The Hong Kong subsidiary will be owed 14,438,000 Hong Kong dollars by the USAsubsidiary and will owe it $800,000.

It is a function of the central treasury department to net off inter-company balances as far aspossible and to issue instructions for settlement of the net balances. For this purpose therelevant exchange rates in terms of 1 are $1.415; Hong Kong $ 10.215; Indian rupees 68.10.

Required:

a) Calculate the net payments to be made in respect of the above balances and to state thepossible advantages and disadvantages of such multilateral netting.

b) Explain the terms 'leading' and 'lagging' in relation to foreign currency settlements andstate the circumstances under which this technique might be used.

c) Explain the procedures for matching foreign currency receipts and payments, havingregard to the possibility that these might be on different time scales, and to state theirpossible advantages.

Test your understanding 5 solution

Tutorial note:set up a matrix in a common currency Sterling.

(a) Net payments. Advantages and disadvantages of multilateral netting.

Conversion rates are 1 = $1.415

= Hk$10.215

= IRu68.10

India Hong Kong US

Indian subsidiary owes 749,166

Hong Kong subsidiary owes 2,120,132 565,371

US subsidiary owes 1,413,412

Indian subsidiary owes 749,166 and is owed 2,120,132

Net receipts 1,370,966

Hong Kong subsidiary owes 2,685,503 and is owed 1,413,412

Net payment (1,272,091)

US subsidiary owes 1,413,412 and is owed 1,314,537


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Net payment (98,875)

The Central Treasury Department should issue instructions for the Hong Kong subsidiary to pay

the Indian subsidiary 1,272,091 and the US subsidiary to pay the Indian subsidiary 98,875.

Possible advantages:

Fewer transactions less administration

lower transaction costs

Regular settlement less inter-subsidiary disagreement

less exposure risk

Possible disadvantages:

Subsidiary loses flexibility over timing of payments and receipts. This will affect its cash flows

and possibly its ability to choose advantageous exchange rates.

Central Treasury may not operate as efficiently as expected.

Inter-subsidiary transactions will be affected by changes in the exchange rate of the base

currency.

Taxation may adversely affect the subsidiary.b) 'Leading' and 'lagging'

'Leading' and 'lagging' are terms relating to the speed of settlement of debts.

'Leading' refers to an immediate payment or the granting of very short term credit, whereas

'Lagging' refers to the granting (or taking) of long-term credit.

In relation to foreign currency settlements, additional benefits can be obtained by the use of

these techniques when currency exchange rates are fluctuating (assuming one can forecast

the changes).

If the settlement is in the payer's currency, then 'leading' would be beneficial to the payer if

this currency were weakening against the payee's currency. 'Lagging' would be appropriate

for the payer if the currency were strengthening.If the settlement was to be made in the payee's currency, the position would be reversed.

In either case, the payee's view would be the opposite.

(c) Matching

Matching of foreign currency receipts and payments is common in multi-national enterprises.

Assuming a foreign subsidiary has both payments and receipts from a third country, then

payments and settlements are made directly by the subsidiary.

For example, a South African subsidiary makes purchases from, and sales to, the USA. It

may open a currency account into which it receives dollars, and from which it makes

payments in dollars, without converting into rand.

Possible advantages:Transaction costs are virtually eliminated.

Transaction exposure is eliminated, except for any balancing figure.

Where the time-scale is significant,care must be exercised to ensure that large balances are

not left idle, or unnecessary and expensive overdrafts incurred


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Chapter summary

Risk management and hedging

Foreign currency risk

Practical approaches Invoice in home currency Do nothing Lead / lag Matching / bank accounts

Trading in currencies Band buys high / sells low Spot now Forward fixed later

Forwards Absolute cover Fixed commitment No upside chance

Money market

hedge

Balance sheet hedges Borrow currency to match valueof overseas asset Offsets translation exposure May create transaction exposure

Derivatives Futures standard tradeableforwards Options standard tradeablebut offer choice

Interest rate risk

Forward Rate

Agreements

Bank pays / receives anyamount over / under set rate

Interest RateGuarantees

Options on interestrates

FuturesFutures values move tooffset gains / losses oninterest rate movements

Othermethods

Options Swaps MatchingAsset / liabilitymanagement

Payment:

Buy currency today Convert Invest till due date Use to pay debt

Receipt

Borrow currency today Convert Use receipt to pay loan

Qualification ACCA

Paper F9


Template ID CS1

Source ACCA Paper 3.7 Study notes session18 21, ACCA Paper 3.7 Study TextChp 6, 14 16


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BUSINESSCH23ACCAPAPERF9V1JA d

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23 Risk management and hedging strategies.pdf